PartnerRe Ltd has reported a net loss attributable to common shareholders of $120 million for the first quarter, compared to a $38 million for the same period in 2017.

The company said the net loss includes net unrealised investment losses of approximately $222 million, mainly driven by an increase in risk-free rates.

The majority of the Bermudian-based company’s investments, including all standard fixed income investments such as government bonds and investment grade corporate debt, are accounted for at fair value.

Emmanuel Clarke, president and chief executive officer, said: “We had solid underwriting profits this quarter in both our non-life and life & health segments with improved pricing margins, a 14 per cent increase in net premium earned to last year’s first quarter and improved combined ratio across various lines of business.

“These results, alongside positive April 1 renewals, where we continued to see increases in business margins, position the company well to deliver improved underwriting results during the course of 2018. Interest rate increases recorded during Q1 are positive news for our business longer-term, yet their accounting impact translated into a net loss.”

The company’s non-life combined ratio improved to 94.7 per cent, from 96.4 per cent a year ago. However, the property and casualty combined ratio rose to 100.4 per cent, up from 97.5 per cent in the first quarter of last year. The rise was primarily attributed to adverse prior year development related to a number of mid-sized losses, attritional losses in North America and a higher acquisition cost ratio.

The specialty combined ratio improved to 86.9 per cent from 95.2 per cent a year ago.

PartnerRe’s book value, excluding dividends on common shares, was down 2.2 per cent compared to December 31.